Despite inflation trend down, stocks sustain losses amid selling pressure

The Nigerian Exchange Limited, NGX dropped further Week-on-Week, WoW, amid selling pressure across sectors despite the fourth consecutive month of decline in headline inflation rate for the month of September 2026.

Specifically, the NGX market capitalisation, which represents the total value of equities listed on the Exchange, dropped to N260.725 trillion last Friday from N161.260 trillion the previous week, as investors lost over N535 billion.

Similarly, another market gauge, NGX All Share Index, ASI nosedived by 0.3% to close last Friday at 247539.73 points from 248,363.55 points the previous week.

Analysis of trading showed that the market closed lower for the third consecutive week, as losses in Zenith  Bank by -6 .5%, MTN Nigeria -1.8%, First HoldCo  -3.9% and GTCO -4.4% contributed significantly to drag the ASI down WoW, bringing the Month-to-Date, MtD  and Year-to-Date, YtD returns to -1.5% and +59.1%, respectively. 

On market activity, trading volume and value declined by 39.0% WoW and 38.0% WoW, respectively.

On sector performance, the Banking declined by -3.1% and Insurance Index -0.1% , while the Oil & Gas Index rose by 3.1% and Consumer Goods 0.1% respectively.  The Industrial Goods index closed flat.

Commenting on the market outlook, analysts at Cordros Capital Limited, stated: “Looking ahead, we expect market sentiment to improve, supported by bargain hunting following recent price declines. Secondly, anticipation of third quarter, Q3 earnings releases and positioning ahead of upcoming dividend qualification dates, which could drive selective buying interest.”

On their part, analysts at InvestData Consulting Limited, said: “The oil market’s movements may also influence expectations regarding inflation, energy costs and broader economic activity. Changes in crude prices can affect transportation, production and distribution costs, with potential implications for businesses across several sectors.

However, the implications for individual companies will vary according to their exposure to energy prices, operating structures and ability to pass higher costs on to customers. Investors should therefore assess the potential impact of oil-price movements within the context of individual company fundamentals and the wider economic environment.”